The Minster for Heath might be tempted to look back on the past week with a certain satisfaction. Her decision to call Quinn Group's bluff over the issue of risk equalisation payments would appear to have been vindicated by the company's subsequent decision to proceed with its takeover of the Irish operations of Bupa.
It was a brave decision on her part as there must have been a temptation to avail of what little wriggle room existed to push the issue beyond the impending election. Indeed Quinn Group appeared to be playing ball in this regard by making conciliatory noises and postponing the application for a licence that would have crystalised the issue.
By rushing through legislation to close off the payment loophole that Quinn Group was hoping to utilise, the Minister brought the matter to a head and achieved an outcome that is satisfactory from her point of view. Quinn Group will now have to make the transfer payments due by Bupa to VHI over the coming years.
By going ahead with the deal, nonetheless, the Quinn Group has acted responsibly and in a manner consistent with a company that wishes to be player in an industry as important to the public good as health insurance. Although the company's attempts to avail of the loophole left it open to accusations of sharp practice, the subsequent decision to proceed can be read as an indication of the sort of long-term commitment which is at the core of all successful insurance operations. This was something that Bupa manifestly lacked.
That said, it would be naive to think that the matter is closed and that Quinn Group will not avail of every avenue open to it to avoid making the payments. And the price that it will pay for Bupa's business will be adjusted to reflect the liabilities that Quinn Group must now honour.
However, any warm glow the Minister may be enjoying will fade when she returns to her office on Monday. The health insurance market remains a dysfunctional mess. She now has two reports in her in-tray saying that even within the confines of the current system of community rating, massive reforms are needed to address the lack of competition. One of the reports - from the Health Insurance Agency - implicitly calls for deeper changes to the system including the break-up of the VHI. This option is fraught with political difficulties.
A third report from a group led by businessman Colm Barrington is due shortly. Even by the standards of this administration, three such documents should be sufficient to prompt a response. Inaction would be inexcusable.
The arguments for reform of the sector are strong. But the central plank of the health insurance system - inter-generational solidarity - must be maintained. In a society where half the population needs private health insurance, the sick and old cannot be made pay more for it than the young and the healthy.